Pro tip to the $250K earner, figure out how to live off $50K like guy #2 and invest the other $200K.
Investing Strategies. What is your move?
- Thread starter PimTac
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I don't want to live on a measly $50,000 a year.
Maybe $50,000 a month, but not per year.
Maybe $50,000 a month, but not per year.
Spending and paying taxes are a part of life. How you spend your hard earned money has nothing to do with income taxes. They are 2 different topics.
Why not generate more taxable income so you can spend more on (hopefully gainfull) investments, which hopefully makes you pay even more taxes?
By the way, paying taxes on investments takes a lot less effort than paying taxes on labor.
Ha! no kidding.
If I were able to both make $250k/yr and save $200k/yr it'd be with the firm plan of exiting the workforce early--and then living on $100k/yr in return. To each their own, but you can't take it with you when you go, nor can you know when you're going to go.
I just wish I had saved (and invested) more when I was younger. We get smart(er) too late in life.
Your posts talked about saving, which I understood to be cash. Investments, to me, are spending, not saving. "A penny saved" is gonna lose due to inflation. A penny invested has a chance to grow and beat inflation.
My point is invest in yourself, espeially personal finance. Then do your best to invest as wisely as you can. I drooled over all the drop dead gorgeous German cars in my company parking lot. But there was not a chance in h-e-double toothpics I would spend that kinda money to get back and forth to work. Plus insurance, registration, you name it. No thank you; I would rather make double payments on the house.
At the end of the day we are saying the same thing. I have posted "minimize recurring costs" many times. I believe in that because you never know when the hard times may hit. Some people get wiped out while others can weather the storm. That's my strategy, anyways.
Hmmm...investing for retirement = saving for the future - seems obvious to me. Ok...cool. Saying the same thing.
My focus is on the gains of my investments and not the taxes. Regardless of my income I always do everything I can legally to reduce my tax burden. Tax deferred accounts were the main instrument.
One of my pet peeves is the overpayment of taxes. Many people do this. They never connected the fact that the big refund they got every year was due to paying too much in taxes. Then they get that big refund from the IRS and promptly spend it on impulse or for material satisfaction. Then it’s gone.
Yup. People are giving the gvt a free loan.
It's their way of "saving money" so they can break open that piggy bank (their refund) and spend it on something, or just save it (which some might). Lots of people also don't like having to pay more money to the IRS at tax time, so would rather "overpay" and get a refund. It's pretty hard to "break even" ... best I've done is within a few 100 dollars.
A few hundred is pretty close. Nothing wrong with that.
Then to add insult to injury for the big refund folks, they will actually pay their tax preparer so that they can get their own money back quicker. Then they can go out and buy a new 90” flat screen to replace the 70” one they got with last years refund.
Hence, all those "tax refund" sales ads that come out around April of each year.
Luckily these markets had a crazy run up for the past 5 years so the both of you benefited greatly.
Most folks can’t max out retirement contributions when they are young adults and starting out.
Most people don't find this to be all that easy. Imagine everyone struggling to make ends meet could just decide to generate more taxable income. Now, l get it. I'm a small business owner and I could see myself doing some side hustles and making more if I needed to but many people, probably most people, find themselves making what they make at the job they have, and it is in these people's best interest to minimize their tax payments and spending, since they can't just go out and generate more taxable income. Or if they can, it comes at a significant expense to their time or in the case of marginal tax rates what they actually get to bring home for their efforts.
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Do you mean analyzing what each fund is invested in?
Most of those top-performing 5 of the 9 are:
Apple
Meta
Etc.
All 5 have the same "largest holdings" list.
True, so I don't berate myself too much for not saving much in my 20's. Still, I was well into my 30's before I started saving in earnest, and as such, I'm behind, as I had bad priorities earlier in life.
That is mainly it. It’s easy to have funds with the same holdings despite being marketed differently like growth versus value etc. The fund managers will go outside the description of the fund in order to spice up returns.
Sometimes funds change their objectives so reading the materials they send you like updated prospectus might get you in a situation where you have duplication. Then you might have to make a decision.
Look at this this way - good life experience to pay forward to your kids!
Don't forget there are many other things that someone can invest in besides stocks.
Like starting a business.
Land.
Buying a semi truck.
Equipment.
Car wash.
McDonald's.
M&M meats.
Gas station.
Hardware store.
Auto parts store.
Golf course.
Indoor climbing gym.
Farm.
Gravel pit.
Excavation company.
Footings and basement wall company.
Antique furniture dealer.
Road grading and plowing.
Moving company.
Mini storage.
Power sports dealership.
Build an 8 plex or apartment building.
Driving school.
Equipment operator school.
Butcher shop.
Tire store.
Build jet boats.
Barber shop.
Teach first aid courses.
Mobile tire swaps.
Fire extinguisher refiller.
Pub.
Resort.
Vineyard.
B&B.
There are thousands of things a person can invest in, many will do better than most stocks.
Why own a millionth of a company, when you can own the entire thing.
Like starting a business.
Land.
Buying a semi truck.
Equipment.
Car wash.
McDonald's.
M&M meats.
Gas station.
Hardware store.
Auto parts store.
Golf course.
Indoor climbing gym.
Farm.
Gravel pit.
Excavation company.
Footings and basement wall company.
Antique furniture dealer.
Road grading and plowing.
Moving company.
Mini storage.
Power sports dealership.
Build an 8 plex or apartment building.
Driving school.
Equipment operator school.
Butcher shop.
Tire store.
Build jet boats.
Barber shop.
Teach first aid courses.
Mobile tire swaps.
Fire extinguisher refiller.
Pub.
Resort.
Vineyard.
B&B.
There are thousands of things a person can invest in, many will do better than most stocks.
Why own a millionth of a company, when you can own the entire thing.
Please add "yourself".
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